easy · Frm Part 2 Operational Risk
An operational resilience framework sets an 'Impact Tolerance' for payments.
How does a KRI support this tolerance?
- The KRI acts as a lagging count of how many times the tolerance was breached.
- The KRI is used to calculate the insurance premium for the payments service.
- The KRI replaces the impact tolerance entirely in the regulatory report.
- The KRI monitors leading triggers (e.g., system latency) that suggest the firm is approaching its maximum tolerable disruption level.
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